directive 2011/7/eu on combating late payment in commercial transactions: consultation · 2012. 12....
TRANSCRIPT
DIRECTIVE 2011/7/EU ON COMBATING LATE PAYMENT IN COMMERCIAL TRANSACTIONS
Consultation
SEPTEMBER 2012
1
Contents Contents..................................................................................................................... 2
1. Proposal for implementing a Directive on combating late payment in commercial transactions.......................................................................................... 3
2. Executive Summary.............................................................................................. 5
3. How to respond..................................................................................................... 6
4. Additional copies .................................................................................................. 7
5. Confidentiality & Data Protection ........................................................................ 7
6. Help with queries .................................................................................................. 8
7. The proposals........................................................................................................ 8
8. Consultation questions ...................................................................................... 11
9. What happens next? ........................................................................................... 12
Annex 1: Consultation Principles.......................................................................... 13
Comments or complaints ...................................................................................... 13
Annex 2: List of Individuals/Organisations consulted ........................................ 14
Annex 3: Late Payment Directive: Consultation response form ........................ 24
Annex 4: Impact Assessment ................................................................................ 28
2
1. Proposal for implementing a Directive on combating late payment in commercial transactions
This consultation seeks views for implementing the European Directive 2011/7/EU on combating late payment in commercial transactions (the Directive). It is issued jointly with the Scottish Government as legislation on late payment in commercial transactions are a devolved matter in Scotland.
The UK is considered to be an exemplar across Member States in its approach to challenging the long-standing culture of late payment because of its early adoption of legislation and its wider strategy for improving business awareness and capability. Government has contributed to and supported the new Directive as it extends existing UK legislation and practice and creates a level playing field for UK suppliers trading across European Member States.
In considering the impact of legislation in this area, it is important to note that regulation is not the remedy for late payment.
Most supplier relationships are long-standing and resorting to legal action is therefore not a practical option except as a final alternative. Legislation is intended to create an environment for driving payment on time and best practice dictates that suppliers reference the costs of missing the due payment date in all written contracts and invoices, setting a clear expectation from the outset.
Legislation is also only useful where invoicing is accurate and timely and where terms have been clearly identified before transactions take place. All too often there is an assumption on the part of both the supplier and customer that their standard terms apply and the evidence suggests that over half of all transactions take place with no prior agreement on payment terms. Research also shows that invoicing is often inaccurate and late. That is why Government has promoted advice and guidance on how to manage customer relationships and cash flow – see: http://www.creditmanagement.org.uk/bisguides.htm .
Finally, it is important to check that the customer is capable of making payment by undertaking a credit check. Research indicates that only one in ten suppliers regularly credit check customers.
A copy of the Proposal can be downloaded at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:048:0001:0010:en:PDF
A copy of the Commission’s Impact Assessment on the Directive can be downloaded at: http://www.fecma.eu/documents/Late%20Payment%20in%20B2B%20Directive%20Impact%20Assessment%20-%20Executive%20Summary%20April%202009.pdf
3
The UK Government’s Transposition Guide (http://www.bis.gov.uk/assets/biscore/better-regulation/docs/t/11-775-transposition-guidance.pdf ) recommends that those affected by any new legislation should be consulted and that new legislation is implemented with minimal burdens to business, and especially small business. A similar approach is taken in the Scottish Government’s guidance on handling EU obligations: (http://www.scotland.gov.uk/Topics/International/Europe/Legislation/EU-Obligations )
The main points that you need to be aware of in the Directive are that:
public authorities will be required to pay suppliers within 30 calendar days of receipt of an undisputed invoice, with limited exceptions such as in the healthcare sector - this matches Government’s current best practice for the public sector;
for business to business payments, the period for payment fixed in the contract should not exceed 60 days, unless otherwise expressly agreed and provided such terms are not grossly unfair;
it retains current UK practice where terms have not been agreed, of a default payment period of 30 days and;
there is minimum €40 (approximately £31) for the compensation element - current UK legislation sets three levels of compensation payment according to the value of the payment. Suppliers are not prevented from seeking to claim additional recovery costs as now.
Issued: 20 September 2012
Respond by: 19 October 2012
Enquiries to: Andy Harrison, Policy and Strategy Team, Enterprise Directorate, Department for Business, Innovation & Skills; 1 Victoria Street, London, SW1H 0ET, Tel 020 7215 6032 E-mail [email protected]
This consultation is relevant to all businesses plus businesses that have transactions with public authorities.
4
2. Executive Summary
Late payments constitute a major obstacle to the free movement of goods and services and can substantially distort competition. The resulting administrative and financial burdens impede trade and increases costs. Small and medium-sized enterprises (SMEs) are most vulnerable. The new Directive is a strengthening of the current Directive that essentially extends the protections already enjoyed by UK businesses across the Union. The key difference is that the Directive provides for a minimum compensation of €40 (approximately £31) - current UK law provides for a three tiered payment depending on contract value. The legislation is aimed at creating an environment where paying on time is the norm and late payment is seen to be unacceptable across the business community - it can never be a substitute for effective customer relationships and cash flow management and will always be the option of last resort for suppliers (many of which are in established and mutually beneficial relationships with their customers). The European Commission believes that, once introduced by all EU member states, the new rules could mean an extra £150 billion being made available to businesses across Europe, helping to relieve cash flow problems.
The Directive is based upon UK legislation and the UK is recognised as an exemplar across Member States, including for the measures it has introduced to drive a culture of paying according to agreed terms (the Prompt Payment Code, improved guidance for suppliers and speedy public sector payment). Evidence suggests that the best way of securing timely payment is to agree terms in advance of the transaction and to invoice timely and accurately - effort therefore needs to be focussed upon managing customer relationships and managing cash flow.
The UK will transpose (implement) the EU Directive 2011/7/EU by 16 March 2013. There has been some interest in early transposition (implementation) of the Directive and our position has always been clear: our first step will be to consult on transposition with those affected. We will listen to what UK business says and follow the guidance laid out in the Coalition Government’s guide to transposition and the Scottish Government’s guidance1. Whilst we have already consulted on the draft Directive, we are committed to listening to business.
This consultation seeks views on implementing the Directive.
The provisions of the new Directive include, among others:
public authorities will be required to pay suppliers within 30 calendar days of receipt of an undisputed invoice, with the option to extend this period for certain sectors such as healthcare to 60 days - this matches Government’s current best practice for the public sector
1 http://www.bis.gov.uk/assets/biscore/better-regulation/docs/t/11-775-transposition-guidance.pdf
5
for business to business payments, the period for payment fixed in the contract should not exceed 60 days, unless otherwise expressly agreed and provided such terms are not grossly unfair
it retains current UK practice of a default payment period of 30 days where terms have not been agreed,
there is provision for a fixed compensation of at least €40 (approx. £31) - current UK legislation sets three levels of compensation payment according to the value of the payment. Suppliers are not prevented from seeking to claim additional recovery costs as now.
The Directive is designed to combat late payments in commercial transactions within the European Union by laying down common minimum requirements consistent with the principles of subsidiarity and proportionality. These minimum requirements should be complied with in all of the Member States without prejudice to existing national measures.
The Directive covers all debts incurred in commercial transactions. It applies to businesses and public authorities.
3. How to respond
Please state whether you are responding as an individual or representing the views of an organisation. If you are responding on behalf of an organisation, please make it clear who the organisation represents by selecting the appropriate interest group on the consultation response form and, where applicable, how the how the views of members were assembled.
A copy of the Consultation Response form is enclosed or available electronically at http://www.bis.gov.uk/assets/biscore/enterprise/docs/d/12-1131rf-directive-combating-late-payment-commercial-transactions-form
If you decide to respond this way, the form can be submitted by letter or email to: Andy Harrison, Policy and Strategy Team, Enterprise Directorate, Department for Business, Innovation & Skills; 1 Victoria Street, London, SW1H 0ET, E-mail [email protected] All responses will be forwarded to the Scottish Government. However, you may wish to send a copy directly to: Andrew McConnell, Business Directorate, Scottish Government,
6
5 Atlantic Quay, 150 Broomielaw. Glasgow G2 8LU E-mail [email protected] A list of those organisations and individuals consulted is in Annex 2. We would welcome suggestions of others who may wish to be involved in this consultation process.
If you have any concerns about the way the consultation is being run please refer to the contact given in Annex 1.
If you wish to respond to this consultation in hard copy you may submit your response using the detachable Consultation Response Form (there is an optional generic copy of this form at Annex 4 below).
4. Additional copies
You may make copies of this document without seeking permission. Further printed copies of the consultation document can be obtained from:
BIS Publications Orderline: ADMAIL 528 London SW1W 8YT Tel: 0845-015 0010 Fax: 0845-015 0020 Minicom: 0845-015 0030 www.bis.gov.uk/publications
An electronic version can be found at http://www.bis.gov.uk/assets/biscore/enterprise/docs/d/12-1131-directive-combating-late-payment-commercial-transactions-consultation
Other versions of the document in Braille, other languages or audio-cassette are available on request.
5. Confidentiality & Data Protection
Information provided in response to this consultation, including personal information, may be subject to publication or release to other parties or to disclosure in accordance with the access to information regimes (these are primarily the Freedom of Information Act 2000 (FOIA), the Freedom of Information (Scotland) Act 2002, the Data Protection Act 1998 (DPA) and the Environmental Information Regulations 2004). If you want information, including personal data that you provide to be treated as confidential, please be aware that, under the FOIA, there is a statutory Code of Practice with which public authorities must comply and which deals, amongst other things, with obligations of confidence.
7
In view of this it would be helpful if you could explain to us why you regard the information you have provided as confidential. If we receive a request for disclosure of the information we will take full account of your explanation, but we cannot give an assurance that confidentiality can be maintained in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded as binding on the Department.
6. Help with queries
Questions about the policy issues raised in the document can be addressed to:
Andy Harrison, Policy and Strategy Team, Enterprise Directorate, Department for Business, Innovation & Skills; 1 Victoria Street, London, SW1H 0ET, E-mail [email protected]
A copy of the Government’s Consultation Principles can be found at Annex 1.
7. The proposals Government supports the revision of the Directive as it seeks to introduce a number of improvements to the original, saving business money and creating a level playing field for UK suppliers trading across Member States.
Business to business payment terms
Member States shall ensure that the period for payment fixed in the contract does not exceed 60 calendar days, unless otherwise expressly agreed in the contract and provided it is not grossly unfair to the creditor. It should therefore remain possible for parties to agree on payment periods longer than 60 calendar days provided such extension if not grossly unfair to the creditor.
Public sector payment terms
Government recognises that the public sector should set a strong example by paying promptly. Over time it has been improving its payment times to assist the cash flow of businesses.
In 2010, Government introduced a more onerous target that goes beyond this and previous versions of the Late Payment Directive, in committing central Government Departments to aim to pay 80% of undisputed invoices within 5 days. By adopting this measure, it seeks to ensure that the benefits of prompt payment to main contractors are felt through the supply chain and benefit smaller businesses.
8
It has also looked to improve payment times within the supply chain. All Departments are required to include a clause in their contracts that requires prime contractors to pay their suppliers within 30 days. In its procurement of construction works Government continues to increase its use of Project Bank Accounts, which provide both certainty and speed of payment to suppliers down to tier 3 of supply chains. The Cabinet Office has introduced a “Mystery Shopper” service that investigates issues of poor procurement practices, including prompt payment both from public bodies and in public procurement supply chains. Suppliers can use this service anonymously to escalate issues about problems in Government supply chains to the Cabinet Office2.
The Directive proposes that Member States shall ensure that in commercial transactions where the debtor is a public authority the payment period does not exceed 30 calendar days following receipt by the debtor of the invoice, with limited exceptions where the period can be extended. This matches Government’s current best practice for the public sector.
The Directive also proposes that, for transactions in the healthcare sector (acknowledging the funding arrangements which may be unique in many Member States) and, where the public authority carries out economic activities of an industrial or commercial nature, by offering goods or services on the market and is subject to certain transparency requirements, Member States may extend time limits to a maximum of 60 days (extensions of this nature must be reported to the Commission by 16 March 2018). Given the need for the public sector to lead by example, Government sees no reason to adopt this proposal as it would be a retrograde step because it lengthens payment times and delays payment to business.
Statutory interest rate
Simple interest is calculated as equal to the sum of the Bank of England reference rate plus at least eight percentage points
Compensation for recovery costs
The creditor is entitled to obtain from the debtor, as a minimum, a fixed sum of €40, as compensation for recovery costs, plus reasonable additional costs incurred.
Application
Member States shall decide whether to exclude contracts concluded before 16 March 2013.
Verification periods
Member States should ensure that the maximum duration of a procedure of acceptance or verification does not exceed, as a general rule, 30 calendar
2 http://www.cabinetoffice.gov.uk/content/cabinet-office-mystery-shopper-scheme
9
days. Nevertheless, it should be possible for a verification procedure to exceed 30 days where agreed and not grossly unfair to the creditor.
10
8. Consultation questions
1. Should UK public sector payment terms involving healthcare or where the public authority carries out economic activities of an industrial or commercial nature by offering goods or services on the market be extended beyond 30 calendar days to up to 60 days?
2. To transpose (implement) the Directive should we should repeal the existing Late Payment of Commercial Debts (Interest) Act 1998 and replace it with secondary legislation (statutory instruments) or amend the Late Payment of Commercial Debts (Interest) Act 1998?
3. Compensation for recovery costs (Article 6): The current Late Payment of Commercial Debts (Interest) Act 1998, suggests a fixed charge of £40, £70 or £100 depending on the size of the debt (under £1,000, under £10,000, and higher) as compensation for recovering costs. The revised directive propose a creditor is entitled to obtain from the debtor, as a minimum, a fixed sum of €40, as compensation for recovery costs, plus additional costs incurred.
Should the three tiered approach be retained or changed to a minimum compensation?
4. When the Directive is transposed (implemented) on 16 March 2013, our proposal is to exclude contracts concluded before 16 March 2013 from being subject to the Directive, given the changes introduced are not sufficiently substantive to warrant retrospective application and that retrospective application will incur a costly process of contract review – is this the correct choice?
5. An Impact Assessment (IA) can be found at Annex 3 that also includes a number of questions that we would be grateful for you to answer:
IA Q1: Do you have any further evidence about problems created by late payments, particularly where this potentially impacts on business survival/insolvency?3 IA Q2: Do you have any further evidence about the incidence or magnitude of write-offs associated with late payment debts?4 IA Q3: Do you have any further evidence about the incidence of firms chasing late payments outside of existing legislation?5 IA Q4: Do the assumptions underpinning the estimates of costs and benefits in the IA seem sensible? Do you have any evidence that could help to refine these estimates?6
3 See page 5 of the Impact Assessment 4 See page 5 of the Impact Assessment 5 See page 11 of the Impact Assessment
11
IA Q6: Do you agree with the assumptions in the IA regarding the calculations of written off debt? Do you have any further evidence that could help to refine the estimates about the potential reduction in administrative costs associated with chasing late payments?7 IA Q5: Do you agree with the assumptions in the above calculations? Do you have any further evidence that could help to refine the estimates about the potential reduction in write-offs?8
7. Any other comments? Should you have any comments on the Impact assessment, please include them in your response.
9. What happens next?
After the closing date the responses will be collated and summarised. These will be published on the BIS website. The Government will aim to publish the results of this consultation and provide a response by December 2012.
The Better Regulation Executive Code of Practice on consultation states that decisions in the light of the consultation should be made public promptly with a summary of views expressed and reasons given for decisions finally taken. This should be on the BIS website, including a link from the central BIS consultation web pages, with paper copies of the summary of responses made available on request. The Scottish Government will take similar actions.
6 See page 11 of the Impact Assessment 7 See page 12 of the Impact Assessment 8 Seep page 13 of the Impact Assessment
12
Annex 1: Consultation Principles The Civil Service Reform Plan commits the Government to improving policy making and implementation with a greater focus on robust evidence, transparency and engaging with key groups earlier in the process. As a result the Government is improving the way it consults by adopting a more proportionate and targeted approach, so that the type and scale of engagement is proportional to the potential impacts of the proposal. The emphasis is on understanding the effects of a proposal and focussing on real engagement with key groups rather than following a set process. The key Consultation Principles are:
departments will follow a range of timescales rather than defaulting to a 12-week period, particularly where extensive engagement has occurred before;
departments will need to give more thought to how they engage with and consult with those who are affected;
consultation should be ‘digital by default’, but other forms should be used where these are needed to reach the groups affected by a policy; and
the principles of the Compact between government and the voluntary and community sector will continue to be respected.
The new Consultation Principles are now in force and replaces the Code of Practice on Consultation issued in July 2008 on the BIS website.
Comments or complaints
If you wish to comment on the conduct of this consultation or make a complaint about the way this consultation has been conducted, please write to:
John Conway BIS Consultation Co-ordinator Department for Business Innovation and Skills 1 Victoria Street, London SW1H 0ET Telephone 020 7215 6402 or e-mail to: [email protected]
13
14
Annex 2: List of Individuals/Organisations consulted ACAS Access Risk Management Group Accord Advancing UK AeroSpace, Defence & Security Industries Aegis AEP Agricultural Industries Confederation APCO Worldwide Ariadne Capital Asian Business Federation Asian Trades Link Association Aspect Associated Society of Locomotive Engineers and Firemen Association for Consultancy and Engineering Association for Financial Markets in Europe Association for Instrumentation, Control, Automation and Laboratory Technology Association for Road Traffic Safety & Management Association of Accounting Technicians Association of British Fire Trades Association of British Furniture Manufacturers Association of British Health-Care Industries Association of British Insurers Association of British Theatre Technicians Association of British Travel Agents Association of Chartered Certified Accountants Association of Colleges Association of Convenience Stores Association of Cycle Traders Association of Exhibition Organisers Association of Flight Attendants Association of Independent Financial Advisers Association of Independent Music Association of Learned and Professional Society Publishers Association of Manufacturers of Domestic Appliances Association of Manufacturers of Power Generating Systems
Association of Master Upholsterers and Soft Furnishers Association of Recognised English Language Services Association of Teachers and Lecturers Association of Welding Distributors Automatic Vending Association Automotive Distribution Federation Bakers, Food and Allied Workers Union Bank of England Barclays Business Barclays Private Equity Limited Bathroom Manufacturers Association BDA Bingo Association of Great Britain Bio Industry Association Black Business Association Booksellers Association of UK & Ireland Bristol & Western Engineering Manufacturers' Association Britannia Staff Union British Adhesives and Sealants Association British Aerosol Manufacturers' Association British Aggregates Association British Agrochemicals Association/ Crop Protection Association UK British Air Line Pilots' Association British Allied Trades Federation British Association for Chemical Specialities British Association of Colliery Management British Association of Removers British Association of Toy Retailers British Association of Women Entrepreneurs British Bankers' Association British Beer and Pub Association British Cables Association British Cement Association British Ceramic Confederation British Chambers of Commerce British Chemical Engineering Contractors Association British Cheque Cashers Association British Christmas Tree Growers Association British Coatings Federation British Compressed Gases Association British Contract Furnishing Association British Dental Trade Association British Educational Suppliers Association
British Electrotechnical & Allied Manufacturers' Association British Equestrian Trade Association British Florists' Association British Fluid Power Association British Footwear Association British Franchise Association British Frozen Food Federation British Fur Trade Association British Furniture Manufacturers British Gear Association British Healthcare Trades Association British Holiday & Home Parks Association British Hospitality Association British Hospitality Association, Hotel and Catering British Incoming Tour Operators Association British Industrial Truck Association British Institute of Innkeeping British Insurance Brokers' Association British International Freight Association British Jewellers' Association British Leather Confederation British Lubricants Federation British Marine Industries Federation British Metals Recycling Association British Nuclear Industry Forum British Orthoptic Society Trade Union British Pest Control Association British Precast Concrete Federation British Printing Industries Federation British Property Federation British Retail Consortium British Rubber Manufacturers Association British Security Industry Association British Shops & Stores Association British Textile Machinery Association British Toy & Hobby Association British Valve and Actuators Manufacturers Association British Vehicle Rental and Leasing Association British Video Association British Wood Preserving & Damp-Proofing Association British Woodworking Federation Broadcasting, Entertainment, Cinematograph and Theatre Union Builders Merchants Federation
Business & Accounting Software Developers Association Business in Sport and Leisure Association Business in the Community Business Services Association Business Services Organisation Procurement and Logistics Services Capital for Enterprise Board Catering Equipment Suppliers Association Central Procurement Directorate Chartered Accountants Ireland Chartered Institute of Taxation Chartered Society of Physiotherapy Chemical Industries Association Cheshire Pre-School Learning Alliance CIG NI Cleaning & Hygiene Suppliers Association Cleaning and Support Services Association Combined Heat & Power Association Commercial Horticultural Association Commonwealth Business Council Confederation of Aerial Industries Confederation of British Industry Confederation of British Metalforming Confederation of UK Coal Producers Construction Employers Federation Construction Equipment Association Construction Industry Council Construction Products Association Consumer Credit Trade Association Convention of Scottish Local Authorities Cosmetic, Toiletry & Perfumery Association Council of Mortgage Lenders CPD NI DARD NI DCAL NI DE NI DEL NI Dental Laboratories Association Direct Marketing Association Direct Selling Association Domestic Appliance Service Association DSD DSD NI Educational Institute of Scotland EEF Electrical Contractors Association of Scotland Electrical Distributors Association Energy and Utilities Alliance Energy Industries Council
15
Energy Systems Trade Association Energy UK E-Net Computers Engineering Equipment & Materials Users Association English Association of Self Catering Operators Equity Facilities Management Association Factors & Discounters Association Faculty and Institute of Actuaries Faculty of Advocates FDA Federation of Bakers Federation of Environmental Trade Associations Federation of Manufacturing Opticians Federation of Master Builders Federation of Piling Specialists Federation of Small Businesses Fergus Gilligan & Partners Finance & Leasing Association Fire Brigades' Union Food Storage & Distribution Federation Forestry Contracting Association Fork Truck Association Forum for Private Business Forum of Private Business Founders Forum Galvanizers Association Garage Equipment Association Garden Industry Manufacturers Association Gardenex: The Federation of Garden & Leisure Manufacturers GFC Diagnostics Glass and Glazing Federation GMB Guild of Architectural Ironmongers Gun Trade Association H&J Martin Ltd Hairdressing Employers Association Halifax Bank of Scotland employees in the Lloyds Banking Group Hasson & Sons Ltd Health Estates Hospital Consultants and Specialists Association Hotel & Catering International Management Association House Builders Federation
HSBC Bank plc Ian Houston Surgical Systems Independent Footwear Retailers Association Independent Healthcare Association Institute of Business Consulting Institute of Certified Book-Keepers Institute of Chartered Accountants in England & Wales Institute of Consulting Institute of Credit Management Institute of Directors Institute of Family Business Institute of Practitioners in Advertising International Association for Soaps, Detergents and Maintenance Products International Underwriting Association of London International Union of Aviation Insurers Invest NI Irish Congress of Trade Unions Kingfisher Kitchen Specialists Association Lancashire Textile Manufacturers' Association LAPADA the Association of Art and Antique Dealers Law Society of Northern Ireland Law Society of Scotland Lifting Equipment Engineers Association Lighting Industry Federation Lloyds Banking Group Commercial London Underwriting Centre Maltsters Association of Great Britain Management Consultancies Association Metal Packaging Manufacturers Association Mining Association of the United Kingdom Momentum Morrow's Socks Motor Schools Association of Great Britain Music Industries Association Music Publishers Association Musicians' Union Napo National Association of British and Irish Millers National Association of Colliery Overmen, Deputies and Shotfirers National Association of Co-operative Officials National Association of Estate Agents National Association of Master Bakers
16
National Association of Paper Merchants National Association of Specialist Computer Retailers National Association of Stable Staff National Association of Steel Stockholders National Bed Federation National Caravan Council National Council of Building Material Producers National Farmers' Union National Federation for Retail Newsagents National Federation of Enterprise Agencies National Federation of Fish Fryers National Federation of Roofing Contractors National Federation of Terrazzo Marble & Mosaic Specialists National Hairdressers Federation National Housing Federation National Market Traders Federation National Pharmaceutical Association National Tyre Distributors Association National Union of Journalists National Union of Mineworkers National Union of Rail, Maritime and Transport Workers National Union of Teachers Nationwide Group Staff Union Nautilus International NI Council of Voluntary Action NI Housing Executive NI Water NI Water NI Water NIHE Northern Offshore Federation NSCC One Union for Regional Staff Outdoor Advertising Association Outdoor Industries Association Packaging Federation PCS Pencro Periodical Publishers Association Pet Care Trust Pet Food Manufacturers Association Philatelic Traders Society Photo Marketing Association International PICON Policy & Perfornance Division, Central Procurement Directorate NI
Pricewaterhouse Coopers LLP Processing & Packaging Machinery Association Procurement Board Member - external observer Producers Alliance for Cinema & Television Professional Footballers' Association Professional Lighting & Sound Association Prospect Provision Trade Federation Public Relations Consultants Association Publishers Association Quarry Products Association Quoted Companies Alliance Radio, Electrical & Television Retailers Association Railway Industry Association RBS Group Recruitment & Employment Confederation Regional Director QPANI Roads Service NI Rotary Ltd Royal Instutue of Chartered Surveyors Safety Assessment Federation Limited Sales Institute of Ireland, Northern Branch Santander Business Banking Scottish & Northern Ireland Plumbing Employers Federation Scottish Council Development and Industry Scottish Dairy Association Scottish Legal Aid Board Scottish Print Employers Federation Scottish Salmon Shipbuilders & Shiprepairers Association Shop & Display Equipment Association SIB Snack and Crisp Manufacturers Association Social Enterprise UK Society of British Water Industries Society of Chiropodists and Podiatrists Society of Event Organisers Society of Motor Manufacturers and Traders Society of Radiographers Southern Education & Library Board Strategic Investment Board Supplies & Services Division, Central Procurement Directorate Surface Engineering Association SURGE Telecommunications Industry Association
17
Textile Services Association The Anti - Counterfeiting Group The Asset Based Finance Association The Association of Licensed Multiple Retailers The Association of Colleges The Association of Consulting Engineers The Association of Independent Tour Operators The Association of Investment Trust Cos The British Phonographic Industry The Building Societies Association The Chamber of Shipping The Communications Union The Construction Plant Hire Association The Electrical Contractors' Association The Environmental Services Association The Event Supplier and Services Association The Federation of Communication Services The Gas Forum The Giftware Association The Grain and Feed Trade Association The Horticultural Trades Association The Incorporated Society of British Advertisers The Information Technology, Telecommunications and Electronics Association The Institute of Direct Marketing The Institute of Payroll and Pensions Management The International Marine Contractors Association The International Transport Society for the United Kingdom The Law Society The Lift and Escalator Industry Association The Lighting Association The London Bullion Market Association The Machine Tool Technologies Association The Management Consultancies Association The Mid Yorkshire Chamber of Commerce & Industry The National Caravan Council The National Federation of Meat & Food Traders The Newspaper Society
The Paper Federation of Great Britain The Professional Trades Union for Prison, Correctional and Secure Psychiatric Workers The Salt Manufacturers' Association The Scotch Whisky Association The Sports Industries Federation The Teachers' Union The Tile Association The Union for Life The Yacht Harbour Association Thermal Insulation Contractors Association Timber Trade Federation Timber Trade Federation Trade Association Forum Translink Transport Salaried Staffs' Association UCATT UK Cleaning Products Industry Association UK Steel Association/ EEF Engineering Employers Federation Undeb Cenedlaethol Athrawon Cymru Union of Construction, Allied Trades and Technicians Union of Shop, Distributive and Allied Workers Union of Shop, Distributive and Allied Workers UNISON Unite United Kingdom Offshore Operators Association United Kingdom Petroleum Industry Association United Kingdom Quality Ash Association United Kingdom Warehousing Association United Kingdom Weighing Federation United Road Transport Union Unity University and College Union USDAW Visit England Water UK WDR & RT Taggart WGGB Wholesale Markets Brokers' Association Wine and Spirit Association of Great Britain and Northern Ireland Wood Panel Industries Federation Woodworking Machinery Suppliers Association
18
Yorkshire Independent Staff Association Local Enterprise Partnerships Buckinghamshire Cheshire and Warrington Coast to Capital Cornwall and Isles of Silly Coventry and Warwickshire Cumbria Derby Derbyshire Nottingham and Nottinghamshire Dorset Enterprise M3 Enterprise M4 Gloucestershire Greater Birmingham and Solihull Greater Cambridge and Greater Peterborough Greater Manchester Heart of the South West Hertfordshire Hertfordshire Humber Lancashire Leeds City Region Leicester and Leicestershire Lincolnshire Liverpool City Region London New Anglia North Eastern Northamptonshire Oxfordshire Solent South East Midlands Stoke and Staffordshire Swindon and Wiltshire Tees Valley Thames Valley Berkshire The Marches West of England Worcester York and North Yorkshire Councils and Local Authorities Aberdeen Council Adur District Council Allerdale Borough Council Amber Valley Borough Council Angus Council
Antrim Borough Council Ards Borough Council Argyll and Bute Council Armagh City and District Council Arun District Council Ashfield District Council Ashford Borough Council Aylesbury Vale District Council Babergh District Council Ballymena Borough Council Ballymoney Borough Council Banbridge District Council Barking and Dagenham London Borough Council Barnet Council Barnsley Metropolitan Borough Council Barrow-in-Furness Borough Council Basildon District Council Basingstoke and Deane Borough Council Bassetlaw District Council Bath and North East Somerset Council Bedford Borough Council Belfast City Council Bexley Council Birmingham City Council Blaby District Council Blackburn with Darwen Borough Council Blackpool Council Blaenau Gwent County Council Bolsover District Council Bolton Metropolitan Borough Council Borough of Poole Boston Borough Council Bournemouth Borough Council Bracknell Forest Borough Council Bradford Metropolitan District Council Braintree District Council Breckland District Council Brent Council Brentwood Borough Council Bridgend County Borough Council Brighton and Hove City Council Bristol City Council Broadland District Council Bromley Council Bromsgrove District Council Bromsgrove District Council Broxbourne Borough Council Broxtowe Borough Council Buckinghamshire County Council
19
Burnley Borough Council Bury Metropolitan Borough Council Caerphilly County Borough Council Calderdale Metropolitan Borough Council Cambridge City Council Cambridgeshire County Council Camden Council Cannock Chase District Council Canterbury City Council Cardiff Council Carlisle City Council Carmarthenshire County Council Carrickfergus Borough Council Castle Point Borough Council Castlereagh Borough Council Central Bedfordshire Council Central Procurement Directorate Ceredigion County Council Charnwood Borough Council Chelmsford Borough Council Cheltenham Borough Council Cherwell District Council Cheshire East Borough Council Cheshire West and Chester Council Chesterfield Borough Council Chichester District Council Chiltern District Council Chorley Borough Council Christchurch Borough Council City of London Corporation City of York Council Clackmannanshire Council Colchester Borough Council Coleraine Borough Council Comhairle nan Eilean Siar Conwy County Borough Council Cookstown District Council Copeland Borough Council Corby Borough Council Cornwall County Council Cotswold District Council Council of the Isles of Scilly Coventry City Council Craigavon Borough Council Craven District Council Crawley Borough Council Croydon Council Cumbria County Council Dacorum Borough Council Darlington Borough Council
Dartford Borough Council Daventry District Council Denbighshire County Council Derby City Council Derbyshire County Council Derbyshire Dales District Council Derry City Council Devon County Council Doncaster Metropolitan Borough Council Dorset County Council Dover District Council Down District Council Dudley Metropolitan Borough Council Dundee City Council Dungannon and South Tyrone Borough Council Durham Council Ealing Council East Cambridgeshire District Council East Dorset District Council East Hampshire District Council East Hertfordshire District Council East Lindsey District Council East Northamptonshire District Council East Riding of Yorkshire Council East Staffordshire Borough Council East Sussex Council Eastbourne Borough Council Eastleigh Borough Council Eden District Council Edinburgh City Council Elmbridge Borough Council Enfield Council Epping Forest District Council Epsom and Ewell Borough Council Erewash Borough Council Essex County Council Exeter County Council Fareham Borough Council Fenland District Council Fermanagh District Council Forest Heath District Council Forest of Dean District Council Fylde Borough Council Gateshead Metropolitan Borough Council Gedling Borough Council Gloucester City Council Gloucestershire County Council Gosport Borough Council Gravesham Borough Council
20
Great Yarmouth Borough Council Greater London Authority Greenwich Council Guildford Borough Council Hackney Council Halton Borough Council Hambleton District Council Hammersmith and Fulham Council Hampshire County Council Harborough District Council Haringey Council Harlow District Council Harrogate Borough Council Harrow Council Hart District Council Hartlepool Borough Council Hastings Borough Council Havant Borough Council Havering Council Herefordshire County Council Hertfordshire County Council Hertsmere Borough Council Hertsmere District Council High Peak Borough Council Hillingdon Council Hinckley and Bosworth Borough Council Horsham District Council Hounslow Council Huntingdonshire District Council Hyndburn Borough Council Isle of Wight Council Kent County Council Kettering Borough Council King's Lynn and West Norfolk Borough Council Kingston upon Hull City Council Kingston upon Thames Council Kirklees Council Knowsley Metropolitan Borough Council Lambeth Council Lancashire County Council Lancaster City Council Larne Borough Council Law Society of Northern Ireland Leeds City Council Leicester City Council Leicestershire County Council Lewes District Council Lewisham Council Lichfield District Council
Limavady Borough Council Lincoln City Council Lincolnshire County Council Lisburn City Council Liverpool City Council Lloyds Banking Group Commercial London Assembly London Borough of Barking and Dagenham London Borough of Barnet London Borough of Bexley London Borough of Brent London Borough of Bromley London Borough of Camden London Borough of Croydon London Borough of Ealing London Borough of Hackney London Borough of Hammersmith and Fulham London Borough of Haringey London Borough of Harrow London Borough of Havering London Borough of Hillingdon London Borough of Hounslow London Borough of Islington London Borough of Lambeth London Borough of Merton London Borough of Newham London Borough of Redbridge London Borough of Richmond upon Thames London Borough of Southwark London Borough of Sutton London Borough of Waltham Forest London Borough of Wandsworth Luton Borough Council Magherafelt District Council Maidstone Borough Council Maldon District Council Malvern Hills District Council Manchester City Council Mansfield District Council Medway Council Melton Borough Council Mendip District Council Merthyr Tydfil County Borough Council Merton Council Mid Devon District Council Mid Suffolk District Council Mid Sussex District Council Middlesbrough Council Midlothian Council
21
Milton Keynes Council Mole Valley District Council Monmouthshire County Council Moyle District Council Neath Port Talbot County Borough Council New Forest District Council Newark and Sherwood District Council Newcastle-under-Lyme Borough Council Newcastle-upon-Tyne City Council Newham Council Newport City Council Newry and Mourne District Council Newtownabbey Borough Council Norfolk County Council North Devon Council North Dorset District Council North Down Borough Council North East Derbyshire District Council North East Lincolnshire Council North Hertfordshire District Council North Kesteven District Council North Lincolnshire Council North Norfolk District Council North Somerset District Council North Tyneside Council North Tyneside Metropolitan Borough Council North Warwickshire Borough Council North Warwickshire Borough Council North West Leicestershire District Council North Yorkshire Council Northampton Borough Council Northamptonshire County Council Northumberland County Council Norwich City Council Nottingham City Council Nottinghamshire County Council Nuneaton and Bedworth Borough Council Oadby and Wigston Borough Council Oldham Metropolitan Borough Council Omagh District Council Orkney Islands Council Oxford City Council Oxfordshire County Council Pendle Borough Council Peterborough City Council Plymouth City Council Portsmouth City Council Preston City Council Purbeck District Council
Reading Borough Council Redbridge Council Redcar and Cleveland Borough Council Redditch Borough Council Reigate and Banstead Borough Council Ribble Valley Borough Council Richmond Upon Thames Council Richmondshire District Council Rochdale Metropolitan Borough Council Rochford District Council Rossendale Borough Council Rother District Council Rotherham Metropolitan Borough Council Royal Borough of Kensington and Chelsea Royal Borough of Kingston upon Thames Royal Instutue of Chartered Surveyors Rugby Borough Council Runnymede Borough Council Rushcliffe Borough Council Rushmoor Borough Council Rutland County Council Ryedale District Council Salford City Council Sandwell Metropolitan Borough Council Scarborough Borough Council Sedgemoor District Council Sefton Council Sefton Metropolitan Borough Council Selby District Council Selby District Council Sevenoaks District Council Sheffield City Council Shepway District Council Shetland Islands Council Shropshire Council Shropshire County Council Slough Borough Council Solihull Metropolitan Borough Council Somerset County Council South Buckinghamshire District Council South Cambridgeshire District Council South Derbyshire District Council South Gloucestershire Council South Hams District Council South Holland District Council South Kesteven District Council South Lakeland District Council South Norfolk District Council South Northamptonshire Council South Oxfordshire District Council
22
23
South Ribble Borough Council South Somerset District Council South Staffordshire Council South Tyneside Council South Tyneside Metropolitan Borough Council Southampton City Council Southend-on-Sea Borough Council Southwark Council Spelthorne Borough Council St Albans City and District Council St Edmundsbury Borough Council St Helens Metropolitan Borough Council Stafford Borough Council Staffordshire Moorlands District Council Stevenage Borough Council Stockport Metropolitan Borough Council Stockton-on-Tees Borough Council Stoke-on-Trent City Council Strabane District Council Stratford-on-Avon District Council Stroud District Council Suffolk Coastal District Council Suffolk County Council Sunderland City Council Surrey Heath Borough Council Sutton Council Swale Borough Council Swindon Borough Council Tameside Metropolitan Borough Council Tamworth Borough Council Tandridge District Council Taunton Deane Borough Council Teignbridge District Council Telford and Wrekin Borough Council Tendring District Council Test Valley Borough Council Tewkesbury Borough Council Thanet District Council Three Rivers District Council Thurrock Council Tonbridge and Malling Borough Council Torbay Council Torfaen County Borough Council Torridge District Council Tower Hamlets Council
Trafford Council Trafford Metropolitan Borough Tunbridge Wells Borough Council Uttlesford District Council Vale of White Horse District Council Wakefield Council Walsall Metropolitan Borough Council Waltham Forest Council Wandsworth Council Warrington Borough Council Warwick District Council Warwickshire County Council Watford Borough Council Waveney District Council Waverley Borough Council Wealden District Council Wellingborough Borough Council Welwyn Hatfield District Council West Berkshire Council West Devon Borough Council West Dorset Council West Lancashire District Council West Lindsey District Council West Oxfordshire District Council West Somerset District Council West Sussex District Council Westminster Council Weymouth and Portland Council Wigan Council Wiltshire County Council Winchester City Council Windsor and Maidenhead Royal Borough Council Wirral Metropolitan Borough Council Woking Borough Council Wokingham District Council Wolverhampton City Council Worcester City Council Worcestershire Council Worthing Borough Council Wrexham County Borough Council Wychavon District Council Wycombe Council Wyre Borough Council Wyre Forest Council York City Council
Annex 3: Late Payment Directive: Consultation response form
The closing date for this consultation is 19 October 2012 Name: Organisation (if applicable): Address: Please return completed forms to: Andy Harrison, Policy and Strategy Team, Enterprise Directorate, Department for Business, Innovation & Skills; 1 Victoria Street, LONDON, SW1H 0ET, Tel : 020 7215 6032 E-mail : [email protected] Please tick a box that best describes you as a respondent from the list of options below:
Business representative organisation/trade body
Central government
Charity or social enterprise
Individual
Large business (over 250 staff)
Legal representative
Local Government
Medium business (50 to 250 staff)
Micro business (up to 9 staff)
Small business (10 to 49 staff)
Trade union or staff association
Other (please describe)
24
Question 1
1. (Article 4 para b) Should UK public sector payment terms involving healthcare or where the public authority carries out economic activities of an industrial or commercial nature by offering goods or services on the market, be extended beyond 30 calendar days to up to 60 days? Government feels that adopting this measure would be a retrograde step, and would significantly weaken current UK practice of paying within 30 days. Comments:
2. To transpose (implement) the Directive should we should repeal the existing Late Payment of Commercial Debts (Interest) Act 1998 and replace it with secondary legislation (statutory instruments) or amend the Late Payment of Commercial Debts (Interest) Act 1998?
Comments:
25
3. Compensation for recovery costs (Article 6): The current Late Payment of Commercial Debts (Interest) Act 1998, suggests a fixed charge of £40, £70 or £100 depending on the size of the debt (under £1,000, under £10,000, and higher) as compensation for recovering costs. The revised directive propose a creditor is entitled to obtain from the debtor, as a minimum, a fixed sum of €40, as compensation for recovery costs, plus additional costs incurred.
Should the three tiered approach be retained or changed to a minimum compensation?
Comments:
4. (Article 12 para 4) If the Directive is transposed (implemented) on 16 March 2013, our proposal is to exclude contracts concluded before 16 March 2013 from being subject to the Directive, given the changes introduced are not sufficiently substantive to warrant retrospective application and that retrospective application will incur a costly process of contract review – is this the correct choice?
Comments:
26
5. An Impact Assessment is shown at Annex 3 that also includes a number of question that we would be grateful for you to answer: IA Q1: Do you have any further evidence about problems created by late payments, particularly where this potentially impacts on business survival/insolvency?9 IA Q2: Do you have any further evidence about the incidence or magnitude of write-offs associated with late payment debts?10 IA Q3: Do you have any further evidence about the incidence of firms chasing late payments outside of existing legislation?11 IA Q4: Do the assumptions underpinning the above estimates of costs and benefits seem sensible? Do you have any evidence that could help to refine these estimates?12 IA Q6: Do you agree with the assumptions in the above calculations? Do you have any further evidence that could help to refine the estimates about the potential reduction in administrative costs associated with chasing late payments?13
9 See page 5 of the Impact Assessment 10 See page 5 of the Impact Assessment 11 See page 11 of the Impact Assessment 12 See page 11 of the Impact Assessment 13 See page 12 of the Impact Assessment
27
IA Q5: Do you agree with the assumptions in the above calculations? Do you have any further evidence that could help to refine the estimates about the potential reduction in write-offs?14
Do you have any other comments that might aid the consultation process as a whole? Please use this space for any general comments that you may have, comments on the layout of this consultation would also be welcomed. Thank you for taking the time to let us have your views. We do not intend to acknowledge receipt of individual responses unless you tick the box below. Please acknowledge this reply At BIS we carry out our research on many different topics and consultations. As your views are valuable to us, would it be okay if we were to contact you again from time to time either for research or to send through consultation documents?
Yes No
Annex 4: Impact Assessment
Checklist for analysis on EU proposals Title of EU proposal: Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating Late Payment in Commercial Transactions Lead dept/agency: Department for Business, Innovation & Skills Other depts/agencies with an interest:
Lead policy official: Andy Harrison, Policy and Strategy Team, Enterprise Directorate, Department for Business, Innovation & Skills; 1 Victoria Street, London
14 Seep page 13 of the Impact Assessment
28
Cabinet Office and all Whitehall Depts, plus the Devolved Administrations Date: 20 September 2012
SW1H 0ET, E-mail [email protected]
29
30
© Crown copyright 2012 You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. Visit www.nationalarchives.gov.uk/doc/open-government-licence, write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email [email protected]. This publication is also available on our website at www.bis.gov.uk
Any enquiries regarding this publication should be sent to:
Department for Business, Innovation and Skills 1 Victoria Street London SW1H 0ET Tel: 020 7215 5000 If you require this publication in an alternative format, email [email protected], or call 020 7215 5000. URN 12/1131